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Our
Hearts Go Out to all Who have Lost their Homes in the Recent San Diego
Fires!!
Let Us Help You Find San Diego Fire Disaster Relief and Home Loans. |
|
Years
you plan to stay in the house
|
Recommended
program
|
|
1-3
|
3/1 ARM, 1 year ARM or 6 month ARM |
|
3-5
|
5/1 ARM |
|
5-7
|
7/1 ARM |
|
7-10
|
10/1 ARM, 30 year fixed or 15 year fixed |
|
10+
|
30 year fixed or 15 year fixed |
|
Loan
Programs
|
Advantages
|
Disadvantages
|
|
Fixed Rate Mortgages
|
• Monthly payments are fixed over the life of the loan • Interest rate does not change • Protected if rates go up • Can refinance if rates go down |
• Higher interest rate • Higher mortgage payments • Rate does not drop if interest rates improve |
| Adjustable
Rate Mortgages 10/1 ARM 7/1 ARM 3/1 ARM 1 year ARM 6 month ARM 1 month ARM |
•
Lower
initial monthly payment • Lower payment over a shorter period of time • Rates and payments may go down if rates improve • May qualify for higher loan amounts |
• More risk • Payments may change over time • Potential for high payments if rates go up |
| Balloon
Mortgages 7 year 5 year |
• Lower initial monthly payment • Lower payment over a shorter period of time • Many balloon mortgages offer the option to convert to a new loan after the initial term. |
•
Risk
of rates being higher at the end of the initial fixed period • Risk of foreclosure if you cannot make balloon payment or if you cannot refinance or if you cannot exercise the conversion option |
| First Time Buyer Programs | •
Lower
down payment • Easier to qualify • Sometimes you may get lower rates |
•
May
be subject to income and property value limitations • Some programs which have government subsidies may have a recapture tax if you sell the house too early. |
| Stated Income Programs | •
Don’t
need to verify income • Faster approval |
•
Higher
rates • Higher down payment |
| No point, No fee Programs | •
No
closing costs • Less money required to close |
•
Higher
rates • Higher payments |
| Imperfect Credit Programs | •
Potential
for reestablishing credit if you pay your mortgage on time. • When used for debt consolidation, you may be able to reduce your monthly debt payment |
•
Higher
rates • Terms may not be as favorable • Harder to get long term fixed loans • Loans may have prepayment penalties |
| Home Equity Line of Credit | •
You
only borrow what you need • Pay interest only on what you borrow • Flexible access to funds • Interest may be tax deductible |
•
Rates
can change. The maximum interest rate is normally high. • Payments can change • Harder to refinance your first mortgage |
| Home Equity Fixed Loan | •
Fixed
payments • Interest may be tax deductible |
•
Higher
interest rates than on 1st mortgages • Harder to refinance your first mortgage |
| Besides our standard loan programs, we also have a large number of unique programs to serve your needs: | |
| Purchase
a house with 0 down Piggyback loans 80-10-10 or 80-15-5. No PMI payments even with 5% or 10% down. Debt consolidation programs Home Improvement loans Qualify even if you may have been turned down before! |
|
